P&C Industry's First-Quarter Net Income Drops

A tripling of net losses on underwriting and a decline in net investment income contributed to a 3.6 percent drop in the U.S. property/casualty industry's first-quarter 1999 net income after taxes to $9.2 billion, from $9.5 billion in first-quarter 1998, according to Insurance Services Office, Inc. (ISO) and the National Association of Independent Insurers (NAII). The industry's net underwriting loss amounted to $2.9 billion for first-quarter 1999, triple the $0.9 billion in first-quarter 1998. In addition, the industry's net investment income declined to $9.6 billion in the first quarter of 1999 from $9.7 billion in the first quarter of 1998. An increase in the industry's realized capital gains and a decline in its federal income taxes partially offset these adverse developments.